Why Are Web2 Giants Like Porsche NFT Failing In Web3? 

    Web3 is growing astronomically and everyone wants in. Of course, web2 companies wanted to join when they saw the web3 money, hype, and community evolving. However, just because a company is doing so well in web2 doesn’t mean it’ll excel in web3. A prime example is the Porsche NFT project. Who wouldn’t want to own a Porsche? The actual question should be the following. Who wants to own a Porsche NFT? Apparently, no one. 

    Porsche NFT Project Details

    Let’s start off by checking the details of the Porsche NFT collection. We’ve already covered the full collection here. But, in short, the entire 7,500-NFTs collection is based on the iconic 911 Porsche. You get a plain white 911 NFT. Then, you get to design it in whichever way your heart desires. 

    You get to “create your own journey”. Lars Krämer, Manager of Innovation and Methods, said to NFTNow: “We leave a certain amount of freedom to the owners so they can let their style and situational mood flow into the visualization.”

    Porsche NFT Launch Flops

    The Porsche NFT launch was yesterday, January 23, 2023. First, the allowlist mint started followed by a public mint. And, the mint price was 0.911 ETH ( approx $1,479.71 per the ETH rate at the time of writing). 

    Mint Details

    However, the launch was terrible. Almost no one was interested. Out of the 7,500 supply, 6086 NFTs are still available. Yes, 81.15% of the total collection is still there for you to mint. Meaning only 1,414 (18.85%) Porsche NFTs were sold per the data on their website.

    Mint Checkout Porsche NFT

    Floor Price Crashes Under Mint Price

    However if for some reason you want to grab an NFT, don’t mint it. You can simply buy it on a secondary marketplace and be at a bargain. Why? The current floor price on OpenSea is 0.908 ETH ( approx $1,474.84 per the ETH rate at the time of writing). 

    Wait, isn’t that lower than the mint price? Exactly. If we look at the below graph by NFTGO, we’ll see the severe crash in Porsche NFT floor price. Even the sales volume shot down.

    Porsche NFT Floor Price

    Why Did Porsche NFT fail?

    Let’s dig in to see why such a prestigious company crashed. 

    Is It The Insane Mint Price?

    So the mint price was 0.911 ETH. Porsche is prestigious, we get it. And, they wanted to further honor the 911 model. But, to set the mint price at 1.4 THOUSAND dollars is just out of it. That’s not how things go in here. 

    Or, do they? Tiffany & Co minted for 30 ETH at the price and it sold out. So it actually makes sense that Porsche’s mint price is expensive. If you can’t buy a Porsche in real life, what makes you think you can buy one in web3? 

    However, Tiffany’s had a VERY limited supply. What was Porsche thinking with a 7 THOUSAND supply? It’s not black Friday. Moreover. if you really want to sell your NFT for such a price, put in some effort. Someone would buy a Porsche NFT if it provides more value than just being a JEPG. So, does it?

    Porsche NFT Underwhelming Utility? 

    Let’s say you pay the money and you get the NFT. Now, what? Well, if you mint a digital collectible from the first Porsche NFT project, you become part of the “Pioneers Circle.” Once you become a pioneer, will participate in building Porsche’s web3 future. 

    And, you will get the following perks:

    Porsche NFT Utility

    Now, all of this is talking in the sky. You would get access to this club that will then give you access to that. When is all of this going to happen? We never know. So there is a question mark on utility. I mean, Tiffany’s gave their holders a pendant. 

    Porsche’s perks sound like any other NFT project. The community was definitely expecting much more than customizable Porsche pictures.

    Porsche Didn’t Build A Web3 Community

    Now, THAT is the main problem. If you don’t know how the NFT space works, let me tell you. It is centered around community. You can not, and clearly will not, excel with no community. Even Dave Krugman, artist and founder of NFT creative agency Allships, agrees. 

    The usual web2 marketing tactics won’t get you anywhere. If you want to join web3, you must play by its rules. Porsche doesn’t have that. They barely even interact with people on Twitter. 

    Porsche Receives Massive Backlash

    So barely anyone bought Porsche NFTs. To put salt on the wound, people on Twitter either made fun of the project or completely bashed it. Or, both. Let’s take a look at a few tweets. 

    Porsche Listens To Holders

    In response to the severe criticism it got, Porsche replied. They said they listened to their holders and will be limiting the supply. This is absolutely needed because the smaller the supply, the higher the demand. But, does anyone want these NFTs?

    Web2 Companies Should Do Better

    Porsche NFT drop failure should be a lesson to all web2 peeps. If you want to join web3, welcome abroad. However, be SMART about it. Put your ego aside, and utilize web3 degens who understand the market. Don’t put a high price on an even higher supply with zero community. This is the formula for failure. Porsche isn’t the only web2 company that flopped in this space. National Geographic did too. Read all about it here!


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